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Centre of expertise CIBIF

Faculty of Economics and Business
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Roelof Salomons

Date:07 November 2019
Roelof Salomons
Roelof Salomons

To me financial markets are a laboratory of economics, great source of wealth creation and also a test of one’s analytical capabilities. Do we understand the world? Can we see how assets are being priced? Can we analyse it, build and protect portfolios that benefit from the wealth creation in order to finance long term liabilities?

These questions fascinate me. I find the combination of academic and business to be very helpful. To me and my students. Academia provides the theoretical base that is desperately needed, forces us to take the long-term view, and teaches us to stay clear from the “madness of the crowds”. Being an investor teaches you to take a step down from the ivory tower and see how theory works in practice. Financial markets are also humbling, since there is more to price setting than just rationality. Any practitioner who has seen how the flow of high frequency data influences asset prices, how deals are being priced and subscribed to, or has seen the price of assets rise and fall during and after a speculative bubble, will confirm that financial markets are neither fully rational nor perfect, at least in the short run.

My research interests and topics I supervise relate to asset pricing, portfolio management and investment strategies.